India’s Global Capability Centers Driving Economic Growth and Boosting Services Exports: A 18-Year Review

India’s services exports have surged over the past 18 years, with global capability centers (GCCs) playing a critical role in this growth. These GCCs have not only boosted real estate but also expanded services exports, contributed to economic growth, created jobs and led to a rapid increase in revenues for firms. GCCs are offshore entities set up by companies worldwide, supporting various business processes such as IT, human resources, finance and analytics.

According to a report by Goldman Sachs titled “India’s rise as the emerging services factory of the world,” revenues from GCCs in India have grown nearly 4x at a compound annual growth rate (CAGR) of 11.4% over the past 13 years, reaching $46 billion as of FY23. The number of GCCs has more than doubled from 700 to 1580 during the same period, with the sector adding approximately 1.3 million employees at a CAGR of 11.6%. This has taken the total employee headcount to 1.7 million in FY23.

Furthermore, high-value services are expected to drive strong growth in top-end discretionary consumption and demand for commercial and residential real estate in India in the coming years. India’s services exports grew to nearly $340 billion in 2023 at a CAGR of around 11% since 2005, surpassing goods exports growth. As a result, India’s share in global services exports increased from under 2% in 2005 to 4.6% in